Opel may return to profitability in 2011

Article by Christian A., on August 27, 2010

Opel aims that in 2011, it will be profitable once again and it will be able to repair its reputation that was damaged due to the months of uncertainty, according to CEO Nick Reilly.

At the sidelines of the Automotive News Europe Congress last Tuesday, Reilly said that because of major restructuring costs, a profit is not feasible this year.

Parent General Motors Co. had made a last-minute decision last year to keep Opel. In doing so, it turned its back on months of negotiations to sell it. Opel is proceeding with a drastic restructuring plan involving 8,300 job cuts.

Reilly said that Opel has a "shot at getting to breakeven or even a little better" next year. He also said that "2012 should be fine." He said that the market in 2010 is stronger than had been predicted, despite the fact that scrapping incentives have been phased out in several markets.

He described the market today as being "about a million units higher" than the forecast seven or eight months ago.

When asked about the possibility of another downturn occurring very soon, he said that he doesn't expect a "significant double dip in the auto industry" and instead, he expects a "gradual, continual improvement." [via autonews - sub. required]

Topics: opel, profit

If you liked the article, share on:

Comments

Recommended

Kia is taking things a step further with the new Kia Stinger, which they first introduced at the 2017 Detroit Auto Show. With the specs given to us by the...
by - June 25, 2017
Earlier this week, Nissan revealed a teaser of the new 2018 LEAF’s interior, giving us an idea of what the electric vehicle has to offer. The company released a video...
by - June 25, 2017
The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries